Firms face obstacles in joints projects

Firms face obstacles in joints projects

JAKARTA (JP): Private sector companies, in partnership with
state-owned companies, face many obstacles in the development of
infrastructure projects, businessman Ciputra said yesterday.

He told participants of a two-day seminar on infrastructure
development that the most difficult obstacle to cope with is the
negative image among the public about any private sector company
which wins contracts for infrastructure development in
partnership with state-owned firms.

Such a negative image, which is generally created by society
leaders, non-governmental organizations and the media, will
disturb the development of infrastructure projects, he said.

"There is a wrong presumption from the public that private
investors participating in infrastructure development projects
aim merely to get profits and to make a fool of the government,"
Ciputra added.

The government has to clear up such a wrong assumption to
support the partnership spirit, he said.

Ciputra admitted that it is difficult for private investors to
get profits from the development of infrastructure projects.
"Infrastructure is expensive, so legal certainty is needed to
make private investors feel secure with their investments," he
said.

Deputy Chairman of the National Development Planning Board,
Rahardi Ramelan, said that the development of infrastructure
facilities in the coming five years period needs more than US$50
billion in investments. (31)